Tag: Dave Hardy

February State Tax Collections Exceed Estimates

In a press call Monday, officials from the state Department of Revenue said February marks the first time this fiscal year that the state’s brought in more money than estimated.

February’s tax collections exceeded estimates for the month, but total revenue collections are still lower than those of last year.

Department of Revenue Cabinet Secretary Dave Hardy said that means the state’s 2017 budget gap remains at the $123 million his office estimated in January. Last week, Gov. Jim Justice announced he would sweep one time monies located in state agency accounts rather than use the Rainy Day Fund to close that gap.

If the fund falls below 15 percent of the general fund budget, it’s possible the state’s bond rating could be downgraded by national rating agencies. The bond rating is like the state’s credit score; another downgrade would negatively affect the state’s ability to borrow money.  

“We are trying very hard to make it to June 30, 2017, by not using the rainy day fund to fill this gap, and therefore not going below the 15 percent number that’s so important to the bond rating agency,” Hardy said.

Sales tax revenue for February increased by about 1 percent from February of last year. Personal income tax revenue fell almost 14 percent from last year. 

State Tax Revenues in February Top Estimates

State revenue figures show West Virginia’s tax collections for February exceeded estimates by $10 million but still leave the government’s estimated shortfall for the fiscal year at $123 million.

Revenue Secretary Dave Hardy notes the Justice administration has identified unspent funds to use and avoid tapping the state’s rainy day fund.

Deputy Revenue Secretary Mark Muchow says sales, personal income and severance taxes all exceeded February estimates.

He calls the increase in payroll tax withholding by almost 1 percent over February last year, “a slight positive trend.”

He says severance taxes on coal, natural gas and timber represent “the most positive trend so far this year” with $28.8 million collected, about 14 percent above last year.

Natural gas with higher prices accounts for “a good part of that growth.”

W. Va. is Enduring a Budget Crisis Like that of the Great Depression

In a conference call with the press on Friday, Department of Revenue Cabinet Secretary Dave Hardy said West Virginia revenue collections for the month of January came in about $18M short of state estimates. 

In other words, he said the state essentially took about an 8 percent pay cut. 

 
“Most of it is caused by the drop in energy prices. But we also had a downturn in some of our other industries,” he explained.  

 
The consumer sales tax was the largest source of the drop in revenue, followed by the personal income tax.

 
7 out of 12 months into the fiscal year, the state is $116 million short of revenue estimates. But Hardy predicts that will grow to as much as $123 million before the end of the fiscal year in July.

 
Hardy says will lawmakers return to Charleston for their annual legislative session next week, they’ll have to quickly find money to fill this year’s budget gap before they can move on to balancing the 2018 budget.

 
That budget could have a revenue gap as large as $600 million.

Justice Picks New Chief of State's Department of Revenue

Gov.-elect Jim Justice says a Charleston attorney, accountant and Kanawha County commissioner will be his administration’s secretary of the Department of Revenue.

Dave Hardy, whose law practice focuses on energy and mining law, also teaches public budgeting at West Virginia State University.

He was elected to the Charleston City Council in 1995 and first elected to the Kanawha County Commission in 2002.

The native of Pratt, West Virginia, will resign from the commission effective Jan. 19 and start his state post the next day.

Justice says Hardy has the experience to help his administration “conquer the budget crisis.”

The state government has a projected $400 million deficit in its $4.1 billion budget.

Hardy will replace Robert Kiss, revenue secretary for Gov. Earl Ray Tomblin whose term is expiring.

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